Personal insolvencies remain stable

Latest monthly figures from the Insolvency Service for England & Wales showed that personal insolvencies  remained broadly stable in July 2026 compared to the previous month, with 11,926 people entering insolvency compared to 11,934 in June. Personal insolvencies were 14% higher when compared to  July 2025, when the figure was 10,454.

The insolvencies consisted of 664 bankruptcies, 3,820 debt relief orders (DROs) and 7,442 individual voluntary arrangements (IVAs). 

The 7,442 IVAs registered in July 2026 was 1% higher than in June 2026 and 27% higher than in July 2025. IVA numbers in the first seven months of 2026 were 14% higher than the 2025 monthly average.

There were 3,820 DROs, 1% lower than June 2026 and 4% lower than July 2025. Following the removal of a fee for entering a DRO in April 2024, monthly numbers over the past two years have been higher than at any point since their introduction. In the first seven months of 2026, DRO volumes were 3% higher than the 2025 monthly average.

The number of bankruptcies in July 2026 was 664, which is 4% lower than in June 2026 but 8% higher than in July 2025. Since March 2026, the average monthly number of bankruptcies was 12% higher than the 2025 monthly average.

There were 5,248 breathing spaces registered under the Debt Respite Scheme in July 2026. This is 38% lower than in July 2025. Of the 5,248 breathing space registrations, 5,098 were Standard breathing space registrations and 150 were Mental Health breathing space registrations.

Commenting on the Insolvency Service’s latest monthly statistics for England and Wales, R3 President, Sonia Jordan, a Restructuring and Insolvency Partner at Knights, said ‘While personal insolvency numbers were broadly unchanged month-on-month with 11,926 people entering a formal insolvency process in July compared to 11,934 in June, the figure was 14% higher than a year ago, underlining the continued pressure on household finances.

‘Many households continue to struggle with debt and there is a clear need for effective support and breathing space. Government support such as the £150 energy bill discount and the freeze on bus fares will provide some relief. Recent figures showing a decline in mortgage arrears and repossessions are also encouraging, but financial pressures remain.

‘The forthcoming review of the personal insolvency framework provides an opportunity to help people achieve a fresh start more quickly while promoting responsible debt management. Providing such support will in turn help to strengthen consumer confidence and responsible spending.”